Guest Column: How technology is changing the landscape for VoD players: Rajiv Vaidya, CEO, Spuul
The growth of smartphones and the advancement of mobile data are both directly proportional to the rise of VoD in the future
With the entry of video streaming giants in an emerging market like India, there isn’t much room for denial that the way content is and will be consumed is changing, and in a big way. There is a thin line between satellite/broadcast television and video on demand (VOD). Having said that, video streaming service providers have a long, long way to go before this line is finally dissolved.
Across the Asia Pacific region, the online video industry is expected to grow rapidly to $46 billion by 2022 from $17.6 billion in 2017 according to a latest report by Media Partners Asia. Smartphone penetration, innovative content, and entertainment on the go are some of the factors that are fuelling this phenomenon. The disruptions in technology that VoD players are investing in is also an important factor for viewers to switch off the television set and switch on their personal devices to stream movies and shows. This occurrence is fast growing in India, with majority using the Internet for online video streaming. A study by CRISIL reports that nearly 80 per cent of total data traffic stems from the Internet. This increase in consumption is primarily fuelled by the device fluidity that users enjoy.
In light of all this, one must not forget that apart from viewing habits, the viewer himself is not who we assume him to be. The viewer is a college goer, a professional, a housewife and even her mother-in- law. What each of these people watches makes up for the most interesting end game of them all – a user experience that caters to all of them, without leaving anyone behind. And for this, VOD service providers rely on the only thing that essentially keeps them going – technology.
Providing a service to a large spectrum of users also means that a service needs to be flexible enough to be moulded and re-invented as and when the need arises, for which technology plays a key role, including but not limited to:
The data game
Data is everything when it comes to Over The Top services. Just having a smart device isn’t enough anymore, a good data plan is what seals the deal. According to a report by the Internet and Mobile Association of India (IAMAI), data services make up for 65 per cent of the average mobile bill, as compared to spends on voice services. With 4G entering the market, and the likes of Reliance Jio making it so easily affordable, the penetration of 4G is tremendous. With above 40 million mobile subscribers in India, it’s only a matter of time before data services, or the lack thereof, begins to dictate how and what content is being consumed online.
Since 4G offers a far better viewing experience than other data generations, reducing buffering, augmenting resolution and providing a better experience, there has been an organic growth of video viewing amongst 4G users. According to Ericsson’s report from August 2017, video makes up for almost 50% of the total data used for content consumption. The usage of 4G is expected to pick up steam beyond metros and rapidly grow into rural areas. Given its significance and the need to consume regional or vernacular content is on the rise, 4G network is expected to expand rapidly.
Smart Phones For A Smart India
It has been observed that almost all of the video content consumed online happens on smart phones – whether it’s a movie, stand up comedy, a Vine or even a video meme on a social networking website! Some VoD service providers have even gone on to say close to 85 per cent of all consumption for their services comes from their smart phone users. And this can be attributed to two things – the availability of a strong data connection, and the availability of an affordable smart phone. India has almost always been a single TV household, but today, there is a TV in everyone’s pocket. With better internet connectivity and their own personal screens, users have control over what they want to watch and how they want to watch. The use of mobile phones in India is ever-growing, with a sizeable population dependent on the internet on their smartphones. This is not just an urban phenomenon, but is visibly present in the rural markets too. The growth of smartphones and the advancement of mobile data are both directly proportional to the advancement of VoD in the future. Have you noticed how an entire movie can now be downloaded onto your mobile phone in under 1GB? It’s only because the average online viewer prefers watching his favourite content on his own time – in the train on the way to work, secretly under his desk in the office, or even at home, but with earplugs and privacy. VoD service providers are catching up on this trend and facilitating the availability of content that fits both the screen and hard disk size of a smart phone, without compromising on its quality.
On demand, by demand
One no longer needs to be around a TV or computer screen to watch content of one’s choice. With the entry of multiple players in the video on demand space, we can see that video content is now being created and marketed specifically for the web and devices. The Internet today has made it possible to stream popular TV shows, movies and more in a personalised set-up as per its viewer’s interest. Service providers are focused on providing personal entertainment in keeping with consumption habits of the customer. From tiny downloads, which allows users to download an entire movie onto his mobile device in under 60 MB, with the right resolution for a mobile screen to pay-per-view or freemium model, customisation is the key for the growth of VoD.
Telecos and VoD
It’s not always possible to be connected to a Wi-Fi network to fulfil one’s online consumption needs. And with the advent of Reliance Jio, all other mobile service providers have been forced to pull up their socks and offer attractive data and voice combinations in order to retain their customer base. The Telecom industry today is far from just being a voice service provider. In order to retain their mainstay, telecom players have recognised the potential of VoD. Although the transition has been subtle, it is moving ahead with full steam given the growing number of consumers looking for customised, less expensive programming coupled with a range of on-demand content services to choose from. Interestingly, the overview of the telecom industry in India is extremely competitive and data price points are discounted. This is likely to push VoD consumption even higher. Telecom companies are also dabbling in the space with their own platforms. As anticipated, Reliance Jio is shaking up the entire ecosystem and will continue to offer bundle of services. The tide in the data business is soon going to turn. For the telecom companies, OTT could mean a new revenue source.
Cost of services
While content is king, it is an expensive proposition. While we have to consider Internet connectivity, subscription, etc. it is important to keep consumers engaged with the right kind of pricing strategy. For instance, at Spuul we have introduced price points to suit the wallet of our users in India. We have adopted the consumer goods model of sachet pricing in the VoD space. For recurring subscriptions the pricing ranges from Rs. 30 for 5 days, Rs. 60 for 10 days, Rs. 90 for 15 days, and Rs. 150 for 30 days. You can pay using your debit or credit card, iTunes, Google Play or operator billing for which we have partnered with major telecom providers in India. This also enables the user to take advantage of having a single payment method on any given device, without having to repeatedly enter card details. Similarly, other players have varied offerings leveraging various forms of video streaming based on subscription, transactional or pay-per-view to advertisement supported video or a hybrid of any of the mentioned combinations.
India is still at a nascent stage in the OTT VoD space, and with giants like Netflix opening up a whole new world to viewers here, things are only looking up for the industry. Technology has allowed players to customize their services, and has also enabled existing and potential consumers to recognize a variety of service providers that will eventually all come together to deliver a viewing experience that is unique for each viewer. With technology on our side, VoD is only expected to thrive from here on out.
(The author is CEO, Spuul, India)
Disclaimer: The views expressed here are solely those of the author and do not in any way represent the views of exchange4media.com.
